🥈 Silver (XAG/USD) Market Update – May 12, 2025
- George Solotarov
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🥈 Silver (XAG/USD) Market Update – May 12, 2025
Silver Stays Elevated Amid Inflation Hedges and Geopolitical Jitters
Silver prices continued to trade near multi-week highs on Monday, with XAG/USD holding above $28.50 in early European trade. The precious metal has benefited from a combination of rising inflation concerns, steady industrial demand, and ongoing geopolitical uncertainty in Eastern Europe and the Middle East.
After breaking through key resistance near $28.00 last week, bulls are now eyeing a possible run toward the psychological $30.00 level, which hasn't been touched since 2021. However, short-term momentum may face headwinds as traders await this week’s U.S. CPI data and Fed commentary.
Fundamentals Driving Silver:
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Inflation Hedge: Sticky U.S. inflation and delayed Fed cuts have renewed investor interest in hard assets like silver.
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Industrial Demand: Demand for silver in solar panels and electronics remains firm, especially with China’s recent push to expand green energy output.
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Geopolitical Tensions: Safe-haven flows continue to support silver alongside gold, especially with heightened risk premiums globally.
📊 Technical Outlook: XAG/USD
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Current Price: $28.52
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Support Levels: $28.00 • $27.40 • $26.85
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Resistance Levels: $29.10 • $29.75 • $30.00
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Trend Bias: Bullish above $28.00
Silver is holding above its 50-day and 200-day EMAs, with a bullish RSI near 62. A clean breakout above $29.10 could accelerate upside momentum toward $30.00, while a break below $28.00 would signal a short-term pullback.
🔔 Trading Signal Insight:
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XAG/USD Buy Zone: $28.10–$28.30
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Target 1: $29.10
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Target 2: $30.00
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Stop-Loss: Below $27.80
🗓️ This Week’s Watchlist for Silver Traders:
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Wednesday: U.S. Core CPI – High impact
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Thursday: PPI and Jobless Claims
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Friday: Fed officials' speeches & Consumer Sentiment Index
Stay alert for volatility spikes around inflation data. We’ll issue real-time updates and trade alerts on our Signals Dashboard.